|
DC Bills
Bills drawn under documentary credits.
Deferred Payment Credit (DPC)
A DC which allows the nomination of a bank, or the issuing bank to effect payment against stipulated documents at a maturity date as specified or determinable from the wording of the credit.
Demurrage
A charge made by a shipping company or a port authority for failure to load or remove goods within the time allowed.
Discounting
Act of purchasing an accepted usance bill of exchange at an amount less than the face value.
Discrepancy
Any deviation from the terms and conditions of a DC, or the documents presented thereunder, or any inconsistency between the documents themselves - see Negotiation under DCs.
Dishonour
Non-payment or non-acceptance.
Documentary Credit (DC)
A conditional undertaking by a bank to make payment, often abbreviated to credit. More precisely, it is a written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request of the buyer (applicant) to pay a sum of money against presentation of documents complying with the terms of the credit within a set time limit.
Documents
The characteristics and importance of the various documents associated with Import/Export operations are explained and illustrated in Deciding on Documents.
Documents Against Acceptance (D/A)
Instruction for commercial documents to be released to the drawee on acceptance of the Bill of Exchange - see Collections ?Introduction.
Documents Against Payment (D/P)
Instruction for documents to be released to the drawee only on payment - see Collections ?Introduction.
Documents of Title
Documents that give their owner the right to the goods, i.e. Bill of Lading.
Draft
Bill of exchange issued by an exporter and submitted to his bank for collection, or under a DC - usually submitted with attached shipping documents - not to be confused with a bankers draft which is sometimes used as a vehicle for reimbursement.
Drawee
Party on whom a bill is drawn and the one to whom presentation is to be made according to the collection order - the importer (NB: for DC bills, the drawee is usually the DC issuing bank).
Drawer
The exporter, who draws the Bill of Exchange/draft which in itself is a claim for payment.
Due Date
Maturity date for payment
Expiry Date
Latest date, usually in the country of the beneficiary, on which negotiation/payment of a DC can take place.
Financed Bills
Bills sent on collection in which the remitting branch has a financial interest.
Foreign Bill Purchased (FBP)
A bill remitted to a correspondent bank in which the remitting branch is financing the exporter - see Financing Export Collections.
Forward Exchange Contract
Contract between the Bank and its customer to buy/sell a fixed amount of foreign currency at a future date at a specified rate. This could be for a customer to make payment under a DC or to sell the proceeds received from an export negotiation.
Freight
Goods OR the cost of transporting goods.
General Average
Loss which is the result of a sacrifice voluntarily made or an expense incurred; for the sole purpose of saving a ship and its cargo in face of a common danger (e.g. jettison of cargo to lighten a ship in distress). The loss is borne proportionately by ship and cargo owners according to their respective interests in the voyage.
Gross Weight
The weight of the merchandise in its shipping form, i.e. including all its packaging.
|
